The Cardano community has received a setback after T. Rowe Price, a global asset manager with $1.89 trillion in AUM, excluded ADA from its newly launched Active Crypto ETF based on the latest crypto update.
The ETF debuted yesterday on NYSE Arca, marking T. Rowe Price’s entry into the actively managed spot crypto ETF market. Trading under the ticker TKNZ, the fund launched with $15 million in assets and carries an annual management fee of 0.75%.
Although earlier filings indicated that the ETF could eventually support up to 15 digital assets, the initial portfolio contains only 10 cryptocurrencies, leaving Cardano off the list.
ETF Prioritizes 10 Digital Assets
Instead of including ADA, T. Rowe Price allocated the fund across ten assets, with Bitcoin and Ethereum dominating the portfolio.
The ETF’s initial allocations are:
- Bitcoin (BTC): 40.75%
- Ethereum (ETH): 18.42%
- Binance Coin (BNB): 11.01%
- Solana (SOL): 9.44%
- XRP (XRP): 9.37%
- Hyperliquid (HYPE): 6.45%
- Stellar (XLM): 3.00%
- Dogecoin (DOGE): 1.28%
- USD Coin (USDC): 0.16%
- Cash Equivalents: 0.11%
Cardano’s exclusion came as a surprise to many investors, especially after earlier regulatory filings indicated that the fund could hold up to 15 cryptocurrencies, with ADA listed among the tokens that met the eligibility criteria. This fueled speculation that ADA would be among the launch assets.
However, T. Rowe Price ultimately opted for a more concentrated portfolio, excluding Cardano despite its status as one of the largest cryptocurrencies by market capitalization.
Active Strategy Leaves Room for Future Changes
Unlike traditional index-based crypto ETFs, T. Rowe Price’s fund follows an active management strategy. Consequently, portfolio managers can periodically adjust both the supported assets and their weightings in response to changing market conditions.
This flexibility means the current asset list is not necessarily permanent. If market dynamics or investment opportunities change, the manager could revise the portfolio in future rebalancing cycles.
Despite missing out on T. Rowe Price’s ETF, Cardano remains available through several diversified crypto investment products already trading in the United States. They include Grayscale Smart Contract ETF, Hashdex Nasdaq CME Crypto Index ETF, and Bitwise 10 Crypto Index Fund (BITW).
These products provide institutional and retail investors with indirect exposure to ADA as part of broader cryptocurrency portfolios.
Standalone Cardano ETF Still Awaits SEC Approval
While Cardano appears in several multi-asset funds, it still lacks a dedicated U.S. spot ETF.
Grayscale has already filed an application to convert its private Grayscale Cardano Trust, which is expected to trade under the ticker GADA, into a spot Cardano ETF. However, the U.S. SEC has not yet approved the proposal.
Market observers continue to speculate that the SEC could issue a decision on the application later this year. If approved, the product would become the first standalone spot Cardano ETF in the United States, potentially providing a significant boost to institutional access and investor demand for ADA.
The CoinRemark Team
Temitope Olajide
